The Hong Kong telecom company returns to the international debt markets after a five-year absence and draws huge demand, allowing the deal to be upsized from an initial target of $300 million.

Hong Kong telecom company PCCW surprised markets on Thursday by pricing a $500 million five-and-a-half-year Reg-S bond. There had been no warning that PCCW would print, but on the back of strong half-year results and amid relative quiet markets, the issuer saw the opportunity to execute a swift intra-day trade.

“Yields hit a number they were happy with, the results stirred a strong reaction and the market was in good shape,” said one source. “The combination of these factors...